Standard Bank signs R400m affordable housing agreement

Posted On Wednesday, 30 October 2013 08:00 Published by
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Standard Bank is making available up to R400m for the financing of affordable housing developments in SA.

Simon RidleyStandard Bank (SBK) is making available up to €30m (about R400m) for the financing of affordable housing developments in SA. This follows the signing of a finance contract with the European Investment Bank at the Standard Bank head office in Johannesburg on Tuesday.
This new cooperation with Standard Bank is part of a wider €150m (about R2bn) engagement by the European Investment Bank‚ Europe’s long-term lending institution‚ to support investment in affordable and social housing in SA. The new programme will be managed in SA by four local partners.
This is part of a framework loan that the European Investment Bank is making available to a number of borrowers in SA. The funds will be used to finance the development of affordable and social housing‚ including student housing. The facility agreed with Standard Bank has a tenor of up to 20 years.
Simon Ridley‚ Standard Bank group financial director‚ said: “We are delighted to have raised this funding from the European Investment Bank. This is a step forward in Standard Bank’s continued commitment to funding projects in the affordable housing market.”
“The new housing lending programme agreed with Standard Bank SA will lead to further development of affordable and social housing in SA. This engagement will help achieve the common objective of increasing financing to build new homes and upgrade housing across the country.
“The new Affordable and Social Housing Initiative remains the European Investment Bank's most substantial financial support for low income housing outside Europe‚ reflecting the importance of decent housing conditions for further economic and social development in SA. We are confident that this new partnership‚ building on previous housing sector lending programmes and cooperation between the two institutions‚ will create jobs‚ stimulate economic development and improve housing for South Africans across the country‚” said Pim van Ballekom‚ European Investment Bank vice-president
This is the second affordable housing loan that Standard Bank has signed with the European Investment Bank‚ the first of which was concluded in 2008.
Under the initiative the European Investment Bank will contribute up to half of a housing schemes’ cost. Selected housing schemes are expected to be implemented by 2017 with around 6‚500 construction jobs being created.
In 2012 the European Investment Bank provided nearly €2.2bn for projects in a range of sectors across Africa.
Last modified on Thursday, 31 October 2013 14:26

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